Cruxellaneous

Three lower-risk ways to profit from the rebound in China

cruxellaneous-3
From Humble Student of the Markets:
 
It should be obvious that China's economy has turned the corner. While we may not necessarily see gangbusters growth, the risks of a hard landing are diminishing fast.
 
The chart below of Chinese stocks (as represented by FXI) compared to the MSCI All-Country World Index (ACWI) shows that FXI rallied through a relative downtrend line in October, indicating that the worst is over for Chinese stocks. Moreover, FXI has retreated to test the downtrend line, which is now relative support, and this represents a good entry point for China bulls.
 
Given the volatility of Chinese stocks due to the uncertainty in political climate and weak corporate governance, a better way to play a rebound in Chinese growth may be through...
 
 
More on China:
 
 
 
Post your comment...